StarTek Inc. (SRT, Financial) filed Quarterly Report for the period ended 2012-06-30.
Startek, Inc. has a market cap of $46.4 million; its shares were traded at around $3.05 with and P/S ratio of 0.2.
Cost of services declined $11.5 million, or 21.8%, from $52.6 million in the second quarter of 2011 to $41.1 million in the second quarter of 2012. Gross profit as a percentage of revenue decreased from 7.9% in the second quarter of 2011 to 7.4% in the second quarter of 2012. Domestic cost of services decreased by approximately $18.0 million due primarily to a $12.0 million decline related to the site closures and ramp-downs mentioned above. Domestic gross profit as a percentage of revenue decreased from 9.0% in the second quarter of 2011 to 2.0% in the second quarter of 2012 due to the site closures and ramp-downs. Cost of services in the Asia Pacific segment increased by approximately $4.4 million, or 40%. The increase was due to higher cost of services in our Makati and Ortigas facilities, compared to the second quarter of 2011, due to new business launches in those facilities. Asia Pacific gross profit as a percentage of revenue increased from 8.0% in the second quarter of 2011 to 17.0% in the second quarter of 2012. The improvement was due to the higher utilization from the greater number of FTEs serving new business launched over the past year. Cost of services in Latin America increased by approximately $2.1 million, or 88%. The increase was primarily due to the opening of a new facility in Honduras in 2011, as well as an increase in FTE in Costa Rica mentioned above resulting from new business launches. Latin America gross profit as a percentage of revenue increased from (19.7%) to (8.1%) due to the higher FTE and utilization.
We reported an operating loss of $4.5 million in the second quarter of 2012 and $10.2 million in the second quarter of 2011. Operating loss as a percentage of revenue was (12.0%) for the second quarter of 2012 compared to (17.8%) for the second quarter of 2011. The change in operating loss was due to lower gross profit, lower selling, general and administrative expenses and lower impairment and restructuring charges in 2012, as previously discussed.
Revenue decreased by $21.4 million, or 18.3%, from $116.6 million in the six months ended June 30, 2011 to $95.3 million in the six months ended June 30, 2012. The decrease was driven by a $41.7 million decline in revenue in our Domestic segment. Of that decrease, $27.0 million is attributable to five site closures that occurred over the past year in Alexandria, Virginia, Collinsville, Virginia, Decatur Illinois, Enid, Oklahoma and Kingston, Ontario. In addition, the downsizing of our facility in Cornwall, Ontario during 2011 resulted in approximately $6.2 million less revenue in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The ramp-down of business in our Jonesboro, Arkansas facility resulted in $4.4 million less revenue in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The remaining change in revenue is attributable to decreased business with our largest client. Revenue in our Asia Pacific segment increased by $15.3 million in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The increase was due to the ramp of new business in both Philippines facilities. Revenue in our Latin America segment increased by $5.1 million in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The revenue increase was due to new business in our Honduras location, which opened in the fall of 2011, and the ramp-up of additional business in our Costa Rica facility. Our client base was more diversified during the six months ended June 30, 2012, compared to the six months ended June 30, 2011, as the growth in Asia Pacific and Latin America was fueled by higher call volumes from two clients, offset by lower call volumes domestically from our largest client.
Cost of services declined $19.8 million, or 18.6%, from $106.5 million in the first half of 2011 to $86.7 million in the first half of 2012. Gross profit as a percentage of revenue increased from 8.7% in the first half of 2011 to 9% in the first half of 2012. Domestic cost of services decreased by approximately $34.0 million due primarily to a $24.1 million decline related to the site closures and ramp-downs mentioned above. Domestic gross profit as a percentage of revenue decreased from 9.8% in the first half of 2011 to 2.6% in the first half of 2012 due to the site closures and ramp-downs. Cost of services in the Asia Pacific segment increased by approximately $9.6 million, or 46%. The increase was due to higher cost of services in our Makati and Ortigas facilities, compared to the first half of 2011, due to new business launches in those facilities. Asia Pacific gross profit as a percentage of revenue increased from 10.1% in the first half of 2011 to 21.0% in the first half of 2012. The improvement was due to the higher utilization as a result of new business launched over the past year. Cost of services in Latin America increased by approximately $4.7 million, or 115%. The increase was primarily due to the opening of a new facility in Honduras in 2011, as well as an increase in FTEs in Costa Rica mentioned above resulting from new business launches. Latin America gross profit as a percentage of revenue increased from (35.2%) to (8.5%) due to the higher FTE and utilization.
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Startek, Inc. has a market cap of $46.4 million; its shares were traded at around $3.05 with and P/S ratio of 0.2.
Highlight of Business Operations:
Revenue decreased by $12.7 million, or 22.3%, from $57.1 million in the second quarter of 2011 to $44.4 million in the second quarter of 2012. The decrease was driven by a $21.5 million decline in revenue in our Domestic segment. Of that decrease, approximately $14.6 million is attributable to four site closures that occurred over the past year in Enid, Oklahoma, Decatur, Illinois, Collinsville, Virginia and Kingston, Ontario. In addition, the downsizing of our facility in Cornwall, Ontario during 2011 resulted in approximately $2.5 million less revenue in the second quarter of 2012, compared to the second quarter of 2011. The ramp-down of business in our Jonesboro, Arkansas facility resulted in $2.9 million less revenue in the second quarter of 2012, compared to the second quarter of 2011. Revenue in our Asia Pacific segment increased by $6.6 million in the second quarter of 2012, compared to the second quarter of 2011. The increase was due primarily to the ramp of new business in both Philippines locations. The total number of Asia Pacific full-time equivalent agents increased by approximately 83% in the second quarter of 2012, compared to the second quarter of 2011. Revenue in our Latin America segment increased by $2.2 million in the second quarter of 2012, compared to the second quarter of 2011. The revenue increase was due to new business in our Honduras location which opened in the fall of 2011, and the ramp-up of additional business in our Costa Rica facility. Full-time equivalent agents (“FTE”) in our Latin America segment increased by 226% in the second quarter of 2012, compared to the second quarter of 2011. Our client base was more diversified during the quarter ended June 30, 2012, compared to the quarter ended June 30, 2011, as the growth in Asia Pacific and Latin America was fueled by higher call volumes from two clients, offset by lower call volumes domestically from our largest client.Cost of services declined $11.5 million, or 21.8%, from $52.6 million in the second quarter of 2011 to $41.1 million in the second quarter of 2012. Gross profit as a percentage of revenue decreased from 7.9% in the second quarter of 2011 to 7.4% in the second quarter of 2012. Domestic cost of services decreased by approximately $18.0 million due primarily to a $12.0 million decline related to the site closures and ramp-downs mentioned above. Domestic gross profit as a percentage of revenue decreased from 9.0% in the second quarter of 2011 to 2.0% in the second quarter of 2012 due to the site closures and ramp-downs. Cost of services in the Asia Pacific segment increased by approximately $4.4 million, or 40%. The increase was due to higher cost of services in our Makati and Ortigas facilities, compared to the second quarter of 2011, due to new business launches in those facilities. Asia Pacific gross profit as a percentage of revenue increased from 8.0% in the second quarter of 2011 to 17.0% in the second quarter of 2012. The improvement was due to the higher utilization from the greater number of FTEs serving new business launched over the past year. Cost of services in Latin America increased by approximately $2.1 million, or 88%. The increase was primarily due to the opening of a new facility in Honduras in 2011, as well as an increase in FTE in Costa Rica mentioned above resulting from new business launches. Latin America gross profit as a percentage of revenue increased from (19.7%) to (8.1%) due to the higher FTE and utilization.
We reported an operating loss of $4.5 million in the second quarter of 2012 and $10.2 million in the second quarter of 2011. Operating loss as a percentage of revenue was (12.0%) for the second quarter of 2012 compared to (17.8%) for the second quarter of 2011. The change in operating loss was due to lower gross profit, lower selling, general and administrative expenses and lower impairment and restructuring charges in 2012, as previously discussed.
Revenue decreased by $21.4 million, or 18.3%, from $116.6 million in the six months ended June 30, 2011 to $95.3 million in the six months ended June 30, 2012. The decrease was driven by a $41.7 million decline in revenue in our Domestic segment. Of that decrease, $27.0 million is attributable to five site closures that occurred over the past year in Alexandria, Virginia, Collinsville, Virginia, Decatur Illinois, Enid, Oklahoma and Kingston, Ontario. In addition, the downsizing of our facility in Cornwall, Ontario during 2011 resulted in approximately $6.2 million less revenue in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The ramp-down of business in our Jonesboro, Arkansas facility resulted in $4.4 million less revenue in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The remaining change in revenue is attributable to decreased business with our largest client. Revenue in our Asia Pacific segment increased by $15.3 million in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The increase was due to the ramp of new business in both Philippines facilities. Revenue in our Latin America segment increased by $5.1 million in the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The revenue increase was due to new business in our Honduras location, which opened in the fall of 2011, and the ramp-up of additional business in our Costa Rica facility. Our client base was more diversified during the six months ended June 30, 2012, compared to the six months ended June 30, 2011, as the growth in Asia Pacific and Latin America was fueled by higher call volumes from two clients, offset by lower call volumes domestically from our largest client.
Cost of services declined $19.8 million, or 18.6%, from $106.5 million in the first half of 2011 to $86.7 million in the first half of 2012. Gross profit as a percentage of revenue increased from 8.7% in the first half of 2011 to 9% in the first half of 2012. Domestic cost of services decreased by approximately $34.0 million due primarily to a $24.1 million decline related to the site closures and ramp-downs mentioned above. Domestic gross profit as a percentage of revenue decreased from 9.8% in the first half of 2011 to 2.6% in the first half of 2012 due to the site closures and ramp-downs. Cost of services in the Asia Pacific segment increased by approximately $9.6 million, or 46%. The increase was due to higher cost of services in our Makati and Ortigas facilities, compared to the first half of 2011, due to new business launches in those facilities. Asia Pacific gross profit as a percentage of revenue increased from 10.1% in the first half of 2011 to 21.0% in the first half of 2012. The improvement was due to the higher utilization as a result of new business launched over the past year. Cost of services in Latin America increased by approximately $4.7 million, or 115%. The increase was primarily due to the opening of a new facility in Honduras in 2011, as well as an increase in FTEs in Costa Rica mentioned above resulting from new business launches. Latin America gross profit as a percentage of revenue increased from (35.2%) to (8.5%) due to the higher FTE and utilization.
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